Sovereigns may prove bigger than commercials shorting gold, Fitzpatrick says
CitiGroup market analyst Tom Fitzpatrick today tells King World News that gold investors may worry too much about the rising open interest in gold futures, which often indicates preparation by the big commercial trading shorts to run small speculative longs out of the market.
Fitzpatrick says: "People are concerned about the commercial shorts in gold, but at the end of the day there are a number of different players in the gold market. The ones we are most focused on are the players who are taking gold out of the market and are not going to be putting it back onto the market. Those large entities are obviously official authorities, central banks, sovereign wealth funds, etc. So while it is possible to chop around because of commercial speculation, and maybe that worries day-to-day traders, for us it is not really a dynamic we are focused on in the big-picture view."
An excerpt from Fitzpatrick's interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc